Quantity supplied rises when price rises because a company will sell more if they can sell it at a larger profit.Sticky input prices, such as wages, and sticky output prices, often known as "menu costs," are the two factors that cause the SRAS curve to slope upward.
Unstable input costs Previously, economists held the view that all prices were negotiable.That implies that prices will swiftly adjust to changing conditions, such as a recession.
For instance, if a recession occurs, excessive unemployment will quickly cause wages to decline.Lower salaries encourage businesses to take on more employees.Greater workers equal more output, hence recessions should largely self-correct due to flexible prices (like salaries).
Learn more about short-run aggregate supply curve:
https://brainly.com/question/25487206
#SPJ4
